9911796707
TMI Blog2003 (2) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-2003 and are disposed of under this common order. 2. The controversy is around the following provision which came into force with effect from 28-9-1996 : (4) For the purposes of this Section, - (2) ....... (b) place of removal means - (i) ...... (ii) ...... (iii) a depot, premises of a consignment agent or any other place premises from where the excisable goods are to be sold after their clearance from the factory . 3. The appellants first remove the medicines in question from the factories of production to their sales depots and sell them from these depots. Both sides are agreed that, in view of the amendment, sale prices from the depots should be the basis for assessment of the medicines to central excise duty on ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants submitted that since all parties concerned, manufacturers, traders, Drug Control Authorities recognized medicines batch-wise, Revenue authorities have committed an error in adopting the price of one batch of medicine for another batch. It has been submitted that such an action is impermissible since it is contrary to commercial practice. This action has also been contended to be against the provisions of Section 4 of the Central Excise Act inasmuch as that Section stipulated the normal price at which such goods (emphasis added) are ordinarily sold as the value for assessment to duty. It is the contention of the appellants that such goods can take in only the medicines produced in a particular batch and not medicines produced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturers would only be comparable goods and would not constitute such goods . It is the submission of the learned Counsel that this clarification, in terms, has accepted that each lot or consignment will be such goods . The appellants have also relied on the decision of this Tribunal in the case of Savita Chemicals Ltd. v. C.C.E., Mumbai VI - 2000 (119) E.L.T. 394 (T) which has held that goods falling in a particular group would become such goods . It is also pointed out that this decision has been confirmed by the Apex Court. 5. Learned Counsel Shri C.S. Lodha for M/s. Lupin Lab. Ltd. and Shri S.S. Gupta, Chartered Accountant for M/s. Aristo Pharmaceuticals Ltd. have also pointed out that method of valuation adopted by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the patients who consumed them did not recognize batch of production as material. He therefore, submitted that treating medicines of different batches as different goods has no basis. He also pointed out that it has to be noted that Drug Control Authorities did not fix sale price batch-wise for medicines. A particular price was fixed for a particular medicine and a time limit of 15 days was provided to the industry and trade to bring a new price into force. He further pointed out that batch-wise earmarking of goods is not unique to medicines. According to him, batch-wise identification is merely a matter of convenience so that the scope for rectification of defects, if any, noticed subsequently, is rendered easy. By batch-wise identifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he whole, such an approach by the Revenue would only throw a spanner in the works. That is to be avoided. 8. Valuation adopted in these orders does not appear to be warranted by the provisions of law. It had been clarified by the Government at the time of introduction of amended Section in 1975 itself that the term such goods in Section 4 apply to goods of a lot. In the pharmaceutical industry, the well established practice appears to be to recognize the production of a batch as of a lot. The decision of this Tribunal (which has been upheld by the Apex Court) in the case of Savita Chemicals Ltd. also supports the appellant s contention. Dealing with the valuation of medicines purely from the point of view of name, quality, etc., as has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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